Protecting the elderly from fraud & scams

Senior citizens are increasingly the target of financial scams. A 2015 study found the elderly lose $12.8 billion every year due to financial fraud. According to one estimate, only one in 44 cases is reported, often because the victim is humiliated, fears retaliation from scammers, or does not know how to report the crime.

The elderly may attract con artists because they tend to be unfamiliar with cyber security, often have a sizeable nest egg, and may be more willing to talk on the phone and answer the door to strangers – but anyone can be a victim.

Help protect yourself and your loved ones from these common scams:

Scam #1: Tech support

In this scenario, a scammer posing as a technical support representative calls to claim there is an issue with your computer – for example, that your software is outdated or that you need to confirm your identity – and asks for remote access to resolve the issue. Once you provide this access, the scammer may request payment for tech assistance, install malicious software, change settings to leave your computer vulnerable, and/or steal your financial information.

To avoid this scam:

Do update all security patches and antivirus software regularly.

Don’t purchase any software or services from an unsolicited call or email.

Don’t give control of your computer to a third party unless you initiated the call.

Scam #2: Medicare/Medicaid fraud

In this scam, which takes advantage of consumer confusion surrounding medical plans, a con artist may call to request your Social Security number or other identifiable information, encourage you to purchase new supplemental policies, file a claim, or sign up for a new Medicare card. Once they have your personal and financial information, scammers can apply for credit cards or steal your identity.

Scam #3: Lottery/sweepstakes scam

In this scenario, scammers may contact you by phone, email, or letter claiming you have won a lottery or sweepstakes and requiring you to pay a fee to receive the prize to avoid taxes or additional fees. These con artists may even threaten to report you to the IRS or police if you do not make the requested payment.

To avoid this scam:

Do be suspicious of anyone claiming you have won a lottery or sweepstakes that you have never heard of or entered.

Do be leery of any lottery or sweepstakes requiring an upfront fee to collect winnings.

Don’t send money to anyone you do not know or cannot verify as being a legitimate company.

Don’t provide personal or financial information if you did not initiate the contact.

Share these useful tips with your loved ones and remind them to monitor their bank accounts and report any suspicious or unauthorized charges immediately.

Lachs, M. S., & Berman, J. (2011). Under the radar: New York State Elder Abuse Prevalence Study. William B. Hoyt Memorial New York State Children, Family Trust Fund, New York State Office of Children and Family Services.

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